This is a personal choice (and others may mock me for it as they see fit) but I am a big fan of dynamic range compression and have it turned on for both my PS3 and my Onkyo 606.
I choose to use it because I do not care for the way the audio in many recent movies (especially action movies) is mixed. The action scenes are so loud compared to the dialogue that I find it physically uncomfortable to watch them at a volume where the dialogue is understandable.
For instance, with the blu-ray of War, I watched it without any dynamic range compression and I had to adjust the volume by 20 steps (out of the 75 volume settings on the Onkyo 606) between the action and non-action scenes in order to keep the volume at a comfortable level for me.
I say adjust the dynamic range compression to whatever you like and to heck with what anyone else says.
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